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Date sent:              Tue, 12 Oct 1999 09:39:30 -0500

National Center For Policy Analysis
DAILY POLICY DIGEST
Tuesday, October 12, 1999

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IN TODAY'S DIGEST

   o   CALIFORNIA WILL SET NURSE-TO-PATIENT RATIOS AT HOSPITALS
       under a new law signed by Gov. Gray Davis....NEW YORK
       TIMES

   o   THERE ARE 69 PERCENT FEWER SCHOOLS IN THE U.S. TODAY than
       in 1940, but student bodies are much larger....INVESTOR'S
       BUSINESS DAILY

   o   A RUSSIAN COURT ORDERS A PRIVATIZED FACTORY RETURNED TO
       THE STATE, alarming foreign investors....WALL STREET
       JOURNAL

   o   THE PENTAGON WILL SPEND $340 BILLION ON MANNED FIGHTER
       AIRCRAFT over the next 30 years, say analysts, despite the
       promise of automated drones....WALL STREET JOURNAL

   o   TELEVISED GUN VIOLENCE ROSE 334 PERCENT from 1992 to 1995,
       notes William J. Bennett in his latest "Index of Leading
       Cultural Indicators"....WASHINGTON TIMES

   o   AGRICULTURAL PRODUCTIVITY WILL CONTINUE TO INCREASE over
       the next 25 years, say experts....BRITISH MEDICAL JOURNAL

IN TODAY'S NEWS

CALIFORNIA MANDATES NURSE-TO-PATIENT RATIOS

California politicians are now making the decisions regarding
nursing personnel, clearly signaling that hospitals are incapable
of the job.

At the behest of the state's nurses' union, Gov. Gray Davis (D)
has signed a bill that makes California the only state to require
hospitals to meet fixed nurse-to-patient ratios.

   o   The act requires the State Department of Health Services
       to set ratios for general, psychiatric and special
       hospitals.

   o   The measure also bars hospitals from assigning unlicensed
       workers to perform certain medical procedures -- including
       administering drugs and assessing a patient's condition.

   o   It prohibits hospitals from shifting nurses trained in one
       unit to duty in another without adequate preparation.

   o   Under a political compromise, the measure is not supposed
       to take effect until 2002.

The California health-care industry opposed the measure on the
grounds that it would impose overly specific requirements on
hospitals and increase costs.

The president of the California Nurses Association enthused that
the signing of the bill represented "one of the most significant
days in the history of nursing."

Davis's Republican predecessor, former Gov. Pete Wilson, vetoed a
similar measure two years ago.

Source: Todd S. Purdum, "California to Set Level of Staffing for
Nursing Care," New York Times, October 12, 1999.

For NYT text (requires free registration)
http://www.nytimes.com/library/national/101299calif-nurse.html

For more on Health issues
http://www.ncpa.org/pi/health/hedex1.html

DO SMALL SCHOOLS IMPROVE EDUCATION?

>From the era of Sputnik until quite recently, the trend in
education has been to consolidate public schools and increase the
size of the student body.  Advocates of larger schools believed
that greater size would reduce per-student costs while providing
pupils with the advantages of apparatus and facilities that would
simply be too expensive for smaller schools.

But in the 1990s, groups advocating smaller schools have sprung
up -- contending that students get lost and feel forgotten if the
educational environment grows too large.  In schools with 2,000
pupils or more, teachers often see 150 or more children a day and
lack the time to form bonds with them.

   o   While there is no universal agreement on what size is
       optimal for a school, many small-school advocates contend
       that schools with 400 to 800 students are more workable.

   o   In 1940, there were 200,000 elementary and secondary
       schools -- compared to 62,000 now.

   o   Average enrollment back then was 127 students -- versus
       653 per school today.

   o   Small-school advocates can point to studies which show
       that holding down enrollment contributes to higher
       graduation rates, lower dropout rates, higher achievement
       and more parental involvement.

Small schools are springing up in New York City and Chicago, as
well as elsewhere.  Both cities are experimenting by dividing
large schools into a handful of smaller schools -- while using
the previous facilities.

Source: Tyce Palmaffy, "The Next Big School Reform: Size,"
Investor's Business Daily, October 12, 1999.

For text http://www.investors.com/stories/IF/1999/Oct/12/25.html

For more on Other Education Issues
http://www.ncpa.org/pi/edu/edu7c.html

A BIZARRE TALE OF REVERSE PRIVATIZATION IN RUSSIA

Russia is supposed to be embracing market economics.  But you
wouldn't know it from a recent court decision there.

A St. Petersburg arbitration court ruled yesterday that foreign
investors must return to state control a porcelain manufacturing
firm founded by Peter the Great's daughter in 1744.  The court
claimed that documents which paved the way for the company's
privatization in 1993 were illegal -- a decision that appears to
be a first in Russia since it began privatizations in 1992.

   o   The foreign owners -- which include the U.S.-Russia
       Investment Fund, or Tusrif, and the investment firm
       Kohlberg Kravis Roberts -- say they will appeal the
       ruling.

   o   Some of those involved warn that the ruling could set a
       precedent for reversing Russian privatization sales, but
       others claim the historic Lomonosov factory is a special
       case.

   o   Russia's Ministry of State Property, which filed the suit,
       joined with workers to try to oust the foreign owners by
       seeking weaknesses in the privatization documents.

   o   The foreign investors accuse Lomonosov managers of
       corrupt, inefficient management -- and say they have
       coerced some workers into opposing foreign investment.

Russia's Federal Securities Commission had asked in August that
the property ministry withdraw its suit -- warning that a seizure
would be "extremely dangerous for Russian capital markets."

A commission official went on to warn that the case "could create
a vast, international scandal."

Source: Jeanne Whalen, "Russian Court Overturns Factory
Privatization," Wall Street Journal, October 12, 1999.

For text (requires WSJ Interactive subscription)
http://interactive.wsj.com/articles/SB939687879194244568.htm

For more on Russia http://www.ncpa.org/pi/internat/intdex9.html

UNMANNED AERIAL VEHICLES COST MUCH LESS THAN FIGHTER JETS

Some analysts argue that the military prefers buying big-ticket
weapons such as tanks, aircraft carriers and fighter jets --
hardware that would have been useful if the Cold War had ever
heated up -- rather than investing in innovative equipment more
suitable to the evolving needs of modern warfare.

For example, there is the promise of unmanned aerial vehicles, or
UAVs, which have been around for decades -- but which the
Pentagon has failed to fully exploit.

   o   Military experts say that UAVs can fly lower, longer and
       into more hazardous missile-riddled airspace than any
       pilot would dare.

   o   During the war in Kosovo, the U.S. used only two dozen or
       so Predator aircraft and similar UAVs despite their
       potential for keeping pilots out of harm's way.

   o   Over the past 20 years, the Pentagon's spending on such
       unmanned drones has totaled $2 billion -- roughly equal to
       what it pays for a single B-2 bomber and one-tenth of what
       it soon plans to spend every year on manned combat
       aircraft.

   o   While some military experts believe the next century could
       see the end of manned combat aircraft altogether, Air
       Force officials reportedly continue to push for ever more-
       advanced manned fighters.

The Pentagon now plans to spend $340 billion on 3,700 manned
fighters over 30 years.

Source: Thomas E. Ricks and Anne Marie Squeo, "Why the Pentagon
Is Often Slow to Pursue Promising Weapons," Wall Street Journal,
October 12, 1999.

For text (requires WSJ Interactive subscription)
http://interactive.wsj.com/articles/SB939680462437134816.htm

For more on Defense Budget
http://www.ncpa.org/pi/congress/cong9.html

BENNETT'S "INDEX OF LEADING CULTURAL INDICATORS" FINDS MIXED
TRENDS

Empower America's William J. Bennett has issued his latest "Index
of Leading Cultural Indicators," and he finds reasons to cheer as
well as frown.

First the good news, as he sees it:

   o   The total crime rate fell 15.4 percent between 1990 and
       1997 -- and the murder rate is the lowest it has been
       since 1967.

   o   Average Scholastic Assessment Test scores rose by 16
       points between 1990 and 1998.

   o   Charitable giving increased by 38 percent  between 1990
       and 1998.

   o   Welfare rolls were down by 46.5 percent from 1994 to 1998.

Now for some areas of social regression, in Bennett's view:

   o   In 1996, American 12th-graders ranked 19th out of 21
       nations in mathematics achievement.

   o   Television violence involving gunplay rose 334 percent
       from 1992 to 1995.

   o   The proportion of 12th-graders using any illegal drug rose
       from 47.9 percent in 1990 to 54.1 percent in 1998.

Bennett issued his first index of cultural indicators in 1994.

Source: Cheryl Wetzstein, "Index of 'Cultural Indicators' Sees
Trends 'Decidedly Mixed,'" Washington Times, October 12, 1999.

For WT text http://www.washtimes.com/nation/nation1.html

For more on Social Trends
http://www.ncpa.org/pd/social/social.html

IN OTHER NEWS

FOOD ENOUGH FOR PROJECTED POPULATION

Food production should be able to keep up with the growth in
world population that is projected to occur over the next 25
years, says population expert Tim Dyson.

   o   An important reason for this is that the worldwide growth
       in cereal yield shows no sign of slowing down, according
       to data from the UN Food and Agricultural Organization on
       cereal yields since 1951 (see figure
       http://www.bmj.com/cgi/content-nw/full/319/7215/988/Fu3?ck=nck ).

   o   For example, in the United States the average cereal yield
       rose from 4.58 metric tons per hectare in 1989-91 to 5.04
       metric tons per hectare in 1995-7.

   o   Some alarmists have pointed to a slowing of the percentage
       increase in agricultural productivity in recent years; but
       economists say because it is a linear trend it is inevitable
       that the annual percentage yield increase is declining.

   o   However, measured in absolute terms, which are what really
       matter, there is no real sign of any slackening in the
       growth of agricultural productivity.

Since 1945 the United States and Canada (with Australia) have
been the world's most important exporters of cereals.  The
average growth of yields in these countries has been and remains
strong.

Source: Tim Dyson (London School of Economics), "Prospects for
feeding the world," British Medical Journal, October 9, 1999.

For text
http://www.bmj.com/cgi/content/short/319/7215/988?ck=nck#Top

For related BMJ articles on population
http://www.bmj.com/cgi/content/full/319/7215/931

For more on Population and Resources
http://www.ncpa.org/pi/internat/intdex11.html

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
                  NATIONAL CENTER FOR POLICY ANALYSIS
                            DALLAS, TEXAS

                    "Making Ideas Change the World"

                           Internet Address:
                          http://www.ncpa.org
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